New Regulation on Ship Registration and Nationality in Indonesia

The Minister of Transportation of the Republic of Indonesia (“Minister”) has issued Minister Regulation number 39 of 2017 on Ship Registration and Nationality (“Minister Regulation No. 39/2017”). This new regulation revokes and replaces Minister Regulation number 13 of 2012 on the same matter.

Key Changes

Minister Regulation No. 39/2017 in essence imposes that Bareboat charter and leasing of vessel are now subject to registration of in rem rights. This is different from the previous regulation where no explanation was provided on registration of other in rem rights over vessel beside ownership right and ship mortgage.

This new regulation also defines an Indonesian joint venture legal entity whose ship is subject to a registration in Indonesia as (i) a closed joint venture legal entity which majority of its shares are owned by Indonesian nationals; and (ii) a publicly listed Indonesian joint venture legal entity with direct foreign ownership of shares not exceeding 49%, and maximum foreign ownership of shares through capital market portfolio is 49%.

Under this new regulation additional documents of examination report on ship safety produced by authorised official, power of attorney (if the ship owner authorized a representative) and recommendation from relevant minister for fishing vessel must be furnished for the registration of ship ownership.

This new regulation also requires certain additional documents as proof of ship ownership.

Our Maritime and Shipping Practice

Maritime and shipping is one of our main focuses. We acted for ship owners, cargo owners, charterers, insurers, and P&I clubs in both dry and contentious matters ranging from accidents, wreck removal, ship arrests, marine pollution, cargo claims, and marine insurance claims.

This publication is a summary overview of Indonesian laws and regulations prepared by Indrawan Darsyah Santoso team for discussion purposes only. The summary captures selected sections of the regulations and is not intended to be relied upon as legal advice. For further information on the above subject, please contact our team.